A recent survey of U.S. office workers revealed that a concept known as “maverick spending” is costing employers tens of thousands of dollars (and in some cases much more) annually.
When it comes to business expenses audits, there’s an interesting balance that companies must reach. If the expense systems (be that T&E or procurement) are hyper-controlling, they become an area of frustration for all employees. Further exceptionally restrictive systems drive employees to find ways to bypass the system entirely. On the flip side, of course, an under-controlling system can allow too much abuse.
Companies should strike a “trust but verify” balance in their systems. Place appropriate but not overly restrictive controls in the systems and then implement a rigorous inspection of expenses using today’s advanced analytic capabilities. That way the employees doing the right thing aren’t being overly taxed by excessive controls and those employees that abuse the systems are identified where their behavior can be corrected.